MPs hailed improvements in public finance management

The joint plenary sitting commended the enhancements in the management of finances in public institutions following the report presented by Auditor General Kamuhire Alexis on the annual audit report for the year ended June 30, 2023.

 Members of Parliament convened in a joint plenary session of both chambers to hear the presentation of Auditor General Kamuhire Alexis on the annual audit report for the year ended June 30, 2023, as stipulated by Article 167 of the Constitution of the Republic of Rwanda.

Mr Kamuhire in his presentation said that this year witnessed an increase in the proportion of Government expenditure audited, rising to 96% from 95% in the previous year. For the year ended June 30, 2023, the total Government expenditure was Frw 5,193 Bn, with the OAG auditing expenditures totalling Frw 4,981 Bn.

“We issued two hundred twenty-two (222) financial audits and (220) compliance audit reports for the financial year ended June 30, 2023. Additionally, we carried out sixteen (16) performance audits, seven (7) IS audits, and ten (10) special audits. The performance audits focused on the areas of national interest in agriculture, education, social protection, environment, investment, ICT, finance, and economy sectors,” the Auditor General told the parliamentarians.

Compared to the previous year, there was a gradual improvement in audit outcomes. “The proportion of audited entities receiving unqualified opinions in financial audits increased to 92% from 68% in the previous year. Similarly, those receiving unqualified opinions in compliance audits of laws and regulations on public spending rose to 69% from 61%, and for compliance with laws and regulations to realize Value for Money, the entities receiving unqualified opinions increased to 59% from 57%. Furthermore, the percentage of fully implemented recommendations rose to 59% from 57%,” he added. The current year’s audits utilized a preventive audit approach to review contracts. With this audit approach, the audits identified financial losses amounting to Frw 6.92 Bn that were likely to be recovered.

The Auditor General noted that unlawful expenditure decreased by 60% compared to the previous year, decreasing to Frw 2.57 Bn from Frw 6.45 Bn. “There is still a need for Chief Budget Managers to put in place strong internal controls to avoid them,” the Auditor General remarked.

The Office of the Auditor General vowed to conduct impactful audits of government institutions to ensure that public resources are utilized for national priorities and the well-being of Rwandan citizens. (End)